In the current fiscal year, 966 people will get startup loans. The Industrial Business Development Foundation issued a notice on Tuesday and recommended them for startup loans.

The Industrial Business Development Foundation had selected 1,301 projects in the preliminary list out of 10,244 proposals received under the 'Startup Enterprise Loan Program'. Out of that, 1,298 projects that were on the list of eligible proposers were selected for presentation, but only 1,156 made presentations. The proposers were evaluated based on the project's photos, videos, financial details, presentation, questions and answers, and other details in the presentation.

The foundation has also made public the information on Thursday by specifying the branch office of the bank that is most suitable for the entrepreneurs on the list of loan recommendations. It has also urged them to contact the branch office of the bank within three days of the publication of the notice. The foundation's information officer, Sahan Dahal, said that the process should be carried out within three days of the branch being specified. Since it is an annual program, the project proposal and recommendation amount will automatically be deactivated after mid-Ashar, the foundation has also stated.

Entrepreneurs recommended for loans will have to go to the designated branch of the bank with documents such as business registration and renewal certificate, PAN/VAT registration certificate, tax payment for the fiscal year 2081/82 and others.

The government had earlier sent a letter to the municipalities through the Ministry of Federal Affairs and General Administration asking them to conduct on-site inspection of project proposals under the Startup Enterprise Loan Program. It was said that it was necessary to check the physical condition of the respective project during the evaluation process of the proposals received for the startup loan. After checking the physical condition, the foundation had made the preliminary list public.

The foundation had issued a 21-day notice on 19 Kartik and called for project proposals for the startup enterprise loan. In that, 10,244 entrepreneurs have submitted project proposals. 2,041 entrepreneurs registered their project proposals at the foundation. 8,203 people registered their proposals online.

The government has allocated a budget of Rs 730 million to disburse startup loans for the current fiscal year. However, Dahal said that the amount disbursed for startup loans will be transferred from the amount not spent by the institution to Rs 1.1 billion. This is the third time that the institution is going to disburse startup enterprise loans. After it was found that some project proponents also brought fake videos while disbursing loans in the two fiscal years, an on-site inspection was requested this time.

Entrepreneurs who are registered as private firms, partnership firms, companies or cooperatives with the relevant industry registration bodies, have high growth potential through transformation into an enterprise business by using innovative and creative thinking and technology in the production of goods or services, have adopted technology, have not exceeded 10 years since the enterprise business was registered, have not exceeded Rs 150 million in any fiscal year after registration, and have started a new enterprise business without merging or splitting an existing enterprise business are eligible for startup loans.

Loans will be given in the areas related to agriculture and livestock, forest products, tourism promotion and entertainment and hospitality, science, technology, information and communication, human health services, education and teaching and learning, automobiles, traditional technology, process improvement of production and service delivery, household or daily living, food production and processing, easy and safe transportation and transit services, mining and mineral research and development.

The foundation had earlier been distributing loans to entrepreneurs from a minimum of 500,000 to a maximum of 250,000 rupees. However, this year it has said that it will distribute loans from a minimum of 500,000 to a maximum of 200,000 rupees.

Earlier, the proposal that received the highest score among the proposals that received more than 50 percent of the points received after credit appraisal by the bank was prioritized and recommended for loans.

The evaluation committee formed by the foundation has been evaluating the proposal based on the presentation of the proposed project and the photos, videos, financial statements and other details of the proposer's business and the questions and answers of the evaluation committee. But since the proposals for loans have started increasing every year, this time an on-site test has also been started.

The total score will be calculated by adding the average score of the evaluation committee of the proposer and the score obtained from the credit appraisal by the bank. The evaluation committee will prioritize the proposal that gets the highest score among the proposals that get at least 50 percent points and submit the loan recommendation list to the executive director of the foundation for approval.

In the last fiscal year 2081/82, although the government allocated 1 billion rupees for startup loan disbursement, 886.625 thousand rupees were disbursed as loans. The administrative expenses of the foundation were up to 3 percent of the allocated budget, while 25 percent was kept in the deposit and loan security fund for loan security (insurance).